CANADA – ONTARIO
LABOUR MARKET AGREEMENT
CANADA-ONTARIO LABOUR MARKET AGREEMENT
Between The Government of Canada (hereinafter referred to as
“Canada”), as represented by the Minister of Human Resources
and Skills Development, styled Minister of Human Resources
and Social Development
AND The Government of Ontario (hereinafter referred to as “Ontario”)
as represented by the Minister of Training, Colleges and
WHEREAS Canada and Ontario share a common vision of a skilled, productive,
mobile, inclusive and adaptable labour force supported by a system of flexible
labour market programs and services delivered by Ontario;
WHEREAS Canada and Ontario are committed to working together to address
the labour market needs and requirements of Ontario;
WHEREAS Canada and Ontario agree that primary responsibility for the design
and delivery of labour market programs and services for individuals to support
the creation of a skilled, productive, mobile, inclusive and adaptable labour force
in Ontario rests with Ontario;
WHEREAS Ontario is striving to provide fully integrated, client focused
employment and training services for Ontarians under Employment Ontario, and
is aiming to develop the best educated and most skilled workforce in North
America to build and sustain Ontario’s prosperity and competitiveness;
WHEREAS Canada has agreed to make new investments in support of labour
market programming in Ontario by providing funding to Ontario towards the costs
of programs that address areas of current and emerging labour market priorities,
including the need to improve the labour force participation of under-represented
WHEREAS Canada and Ontario reaffirm their commitment to achieve full
compliance with their labour mobility obligations under Chapter 7 of the
Agreement on Internal Trade by April 1, 2009 in order to enable qualified workers
of one part of Canada to have access to employment opportunities in any other
part of Canada.
WHEREAS Canada is authorized to enter into this Agreement pursuant to
sections 7 and 10 of Canada’s Department of Human Resources and Skills
Development Act; and,
WHEREAS Ontario’s Minister of Training, Colleges and Universities is authorized
to enter into this Agreement on behalf of Ontario pursuant to the general
authority of the Minister over the ministry pursuant to subsection 2(2) of Ontario’s
Ministry of Training, Colleges and Universities Act.
ACCORDINGLY, Canada and Ontario agree as follows:
1. In this Agreement, unless the context requires otherwise,
“Annual Plan” means the annual plan for a Fiscal Year developed by
Ontario under subsection 22(2);
“Canada-Ontario Labour Market Development Agreement” (LMDA) means
the Canada-Ontario Labour Market Development Agreement entered into
between Canada and Ontario on November 23, 2005;
“Designated Officials” means, for Canada, the Assistant Deputy Minister,
Skills and Employment Branch, Department of Human Resources and
Social Development or such other official of Canada as may be
designated by the Minister of Human Resources and Social Development
by notice in writing to Ontario, and for Ontario, the Assistant Deputy
Minister, Employment and Training Division or such other official of
Ontario as may be designated by the Minister of Training, Colleges and
Universities by notice in writing to Canada;
“Eligible Clients” means unemployed or low skilled workers described in
“Eligible Costs” means the Program Assistance Costs and Program
Administration Costs incurred by Ontario in providing assistance to Eligible
Clients under its Eligible Programs during the Period of the Agreement;
“Eligible Programs” means labour market programs and services provided
by Ontario described in section 8;
“Employment Insurance (EI) Client” means an unemployed individual who
is eligible for assistance under a labour market program provided by
Ontario that is:
(a) similar to an employment benefit established by Canada pursuant
to Part II of the Employment Insurance Act, and
(b) funded by Canada under the Canada-Ontario LMDA;
“Fiscal Year” means the period commencing April 1 of a calendar year and
ending March 31 of the following calendar year;
“LMA Management Committee” means the Committee established under
“Minister of Human Resources and Social Development” is the style used
to refer to Canada’s Minister of Human Resources and Skills Development
and every reference in this Agreement to the Minister of Human
Resources and Social Development shall be deemed to be a reference to
the Minister of Human Resources and Skills Development;
“Period of the Agreement” means the period specified in section 30;
“Program Administration Costs” means the direct and indirect internal
operating costs incurred by Ontario in developing and administering the
“Program Assistance Costs” means
(a) the costs of financial assistance provided by Ontario under its Eligible
Programs directly to, or on behalf of, Eligible Clients, and
(b) the costs of financial assistance or other payments provided by Ontario
under its Eligible Programs to third party service providers for direct
and indirect costs incurred by them, or as payment for services
rendered by them, in relation to the provision of assistance to Eligible
Clients under its Eligible Programs,
but do not include
(i) payments of basic income support to an Eligible Client unless the
payments are linked to active participation in an Eligible Program,
(ii) payments to public or private training institutions for training
infrastructure costs and curriculum development costs, unless those
costs are related to the delivery of Eligible Programs, including training,
to Eligible Clients.
2. The purpose of this Agreement is to set out:
(a) the shared vision of the parties, and the shared objectives and principles
of the Agreement;
(b) the roles and responsibilities of the parties in the labour market;
(c) the general characteristics of the service delivery arrangements of
Ontario in relation to this Agreement;
(d) Ontario’s Eligible Programs, the Eligible Clients of those programs, and
the Eligible Costs of those programs for which the new investments
provided by Canada to Ontario under this Agreement may be used;
(e) the basis for calculating the amount of funding to be provided by Canada
to Ontario each Fiscal Year during the Period of the Agreement; and
(f) the accountability framework for the funding.
VISION, OBJECTIVES AND PRINCIPLES
3. Canada and Ontario share a common vision to create the best-educated,
most-skilled and most flexible workforce in the world.
4. Canada and Ontario agree that the broad objectives of the Agreement are:
(a) Quantity - To increase the participation of Canadians and immigrants in
the workforce to meet current and future labour requirements;
(b) Quality - To enhance the quality of skills; and
(c) Efficiency - To provide the information necessary to make informed
labour market choices and to facilitate workforce mobility.
5. Canada and Ontario agree that the implementation of this Agreement will be
guided by the following principles:
(a) Accessibility – access to comparable programs for EI Clients and clients
who are not eligible for EI, to enhance the labour market participation of
all Ontarians, particularly low-skilled workers and under-represented
(b) Effectiveness – effective programs that draw on best practices from
within Canada and abroad, respond to the needs of employers, and
reflect local labour market conditions;
(c) Quality Client-Centred Delivery – a coherent, integrated approach to
providing client-focused programs;
(d) Fairness – principle-based arrangements with Ontario, respecting
primary provincial responsibility for design and delivery of labour market
programming to individuals; and
(e) Efficiency – improving the efficiency of the national labour market and
strengthening the economic union by facilitating adjustment and
removing barriers to mobility.
ROLES AND RESPONSIBILITIES
6. Canada and Ontario agree that Canada will continue to promote an efficient
and integrated national labour market in support of the national economy,
including the management of the Employment Insurance system. Canada
also will continue to provide federal programs for Aboriginal peoples, youth,
older workers and persons with disabilities.
7. Ontario will continue to offer a variety of labour market programs and
services, including those programs and services for EI Clients funded through
the Canada-Ontario LMDA.
8. Ontario agrees to provide labour market programs to enhance the labour
market participation of individuals by assisting them to prepare for entry to, or
return to, employment or to otherwise obtain or keep employment or maintain
skills for employment.
9. Ontario agrees to use the funding provided under this Agreement to provide
assistance under its Eligible Programs to:
(a) unemployed individuals who are not EI Clients, including but not limited to:
(i) social assistance recipients;
(iii) persons with disabilities;
(iv) older workers;
(vi) Aboriginal peoples;
(vii) new entrants and re-entrants to the labour market; and
(viii) unemployed individuals previously self-employed;
(b) employed individuals who are low skilled, in particular, employed
individuals who do not have a high school diploma or a recognized
certification or who have low levels of literacy and essential skills.
10. Canada and Ontario agree that although Eligible Clients include Aboriginal
peoples, Canada will continue to provide its own labour market programs for
Aboriginal peoples. Canada and Ontario agree, through the LMA
Management Committee, to better coordinate the delivery of their respective
programs for Aboriginal peoples.
11. Ontario will offer Eligible Programs to residents of Ontario. Ontario agrees
not to place a minimum residency requirement on individuals seeking
assistance under the Eligible Programs being funded under this Agreement.
SERVICE DELIVERY ARRANGEMENTS
12.(1) Ontario agrees to provide the Eligible Programs through an integrated and
client focused service delivery network. This network will provide a
coordinated system for accessing the labour market programs of all
ministries/agencies of Ontario by individuals regardless of their particular
needs or barriers and for making appropriate linkages with educational and
training institutions and third party service providers.
(2) Ontario agrees to ensure that its service delivery network continues to
provide needs assessment, case management, tracking and reporting of
progress through interventions and follow-up upon completion of
13.(1) In developing and delivering its Eligible Programs, Ontario agrees to
continue to take into account the needs of the French-language community in
(2) Ontario also agrees to ensure that where there is a significant demand for
services or for assistance under the Eligible Programs in either official
language, individuals can obtain such services or assistance in that official
language. In determining the areas of Ontario where there would be
considered to be a "significant demand," Ontario agrees to use as a guideline
the criteria for determining what constitutes "significant demand" for
communications with, and services from, an office of a federal institution as
set out in the Official Languages Regulations made pursuant to Canada's
Official Languages Act.
14.(1) Subject to the terms and conditions of this Agreement, in each Fiscal Year
during the period beginning April 1, 2008 and ending March 31, 2014,
Canada agrees to make a contribution to Ontario in respect of the Eligible
Costs incurred in that Fiscal Year of an amount not exceeding the amount,
rounded to the nearest thousand, determined by the formula
F x (K/L)
F is $500 million
K is the total population of Ontario for the Fiscal Year; and
L is the total population of all provinces and territories for the Fiscal Year.
(2) For the purposes of this section, the total population of Ontario for each
Fiscal Year and the total population of all provinces and territories for that
Fiscal Year are the respective populations as determined on the basis of the
quarterly preliminary estimates of the respective populations on July 1 of that
Fiscal Year released in September of that Fiscal Year by Statistics Canada.
(3) Based on the Statistics Canada quarterly preliminary estimates of the
respective populations on July 1, 2007, the notional amount of Canada's
maximum contribution to Ontario in Fiscal Year 2008/09 is $194,139,000.
Canada will notify Ontario, as soon as possible following the release in
September 2008 of the population estimates referred to in subsection (2), of
the actual amount of the maximum contribution payable by Canada to Ontario
in Fiscal Year 2008/09 as determined under the formula set out in subsection
(4) For Fiscal Year 2009/10 and each subsequent Fiscal Year during the period
referred to in subsection (1), Canada will notify Ontario at the beginning of the
Fiscal Year of the notional amount of its maximum contribution payable under
subsection (1) in that Fiscal Year. The notional amount will be based on the
Statistics Canada quarterly preliminary population estimates on July 1 of the
preceding Fiscal Year. Canada will notify Ontario of the actual amount of its
maximum contribution in each of those Fiscal Years, as determined under the
formula set out in subsection (1), as soon as possible following the release in
September of each year of the Statistics Canada quarterly preliminary
population estimates referred to in subsection (2).
(5) Notwithstanding subsection (1), Canada may, subject to the approval of
Canada’s Treasury Board,
(a) permit Ontario to retain and carry forward to the next Fiscal Year, ending
in 2013/14, the amount of any contribution paid to Ontario for a Fiscal
Year under subsection (1) that is in excess of the amount of the Eligible
Costs actually incurred by Ontario in that Fiscal Year, and use the amount
carried forward for expenditures on Eligible Costs in the following Fiscal
(b) re-profile the amount of any unpaid portion of Canada’s maximum
contribution payable to Ontario, as determined under subsection (1), from
one Fiscal Year to the next Fiscal Year, ending in 2013/14, and add that
reprofiled amount to the maximum amount payable to Ontario in
subsequent Fiscal Year(s) over the period of the agreement.
For greater certainty, any amount carried forward or re-profiled under this
subsection is supplementary to the maximum amount payable to Ontario
under subsection (1) of this Agreement in that following Fiscal Year.
(6) All amounts carried forward or re-profiled and paid to Ontario, or both,
pursuant to subsection (5) must be spent by March 31, 2014. Ontario is not
entitled to retain any such carried forward or re-profiled amounts that remain
unexpended after March 31, 2014 nor is it entitled to retain any balance of
Canada’s contribution for Fiscal Year 2013/14 paid pursuant to subsection (1)
that remains unexpended at the end of that Fiscal Year. Such amounts are to
be repaid to Canada in accordance with section 20.
15.(1) Canada’s contributions shall be used solely for defraying the Eligible
(2) Ontario shall be responsible for expenditures on Eligible Costs incurred each
Fiscal Year that are in excess of the amount of Canada’s contribution in
respect of that year under this Agreement.
16. Any payment under this Agreement is subject to there being an appropriation
of funds by Parliament for the Fiscal Year in which the payment is to be
17.(1) Canada will make payments of its annual contribution in respect of
Ontario’s Eligible Costs in two instalments each Fiscal Year. The first
instalment will be paid on or about June 15 of each Fiscal Year and the
second instalment will be paid on or about November 15.
(2) The amount of the first instalment will be an amount equal to 50% of
Ontario’s projected expenditures on its Eligible Costs for the Fiscal Year, as
set out in its Annual Plan for the year.
(3) The amount of the second instalment will be an amount equal to the
remainder of Ontario's projected expenditures on its Eligible Costs for the
Fiscal Year as provided in its Annual Plan and adjusted, if necessary, to
reflect the change between the notional and actual maximum contribution
amounts once the actual amount of the maximum contribution has been
determined according to subsection 14(2).
18. If Ontario has failed to provide its annual audited financial statement, as
required under section 23, for any Fiscal Year during the Period of the
Agreement, Canada shall withhold payment of the second instalment of its
contribution for the following Fiscal Year until such time as Ontario provides
the financial statement.
19.(1) Subject to subsection (2), Ontario agrees and undertakes that the funding
provided by Canada under this Agreement shall not displace the normal
funding level for Ontario’s existing labour market programs to enhance the
labour market participation of the unemployed and low skilled employed
referred to in section 9 of this Agreement but that such funding shall be used
to support incremental labour market programs for Eligible Clients.
(2) The undertaking in subsection (1) is not to be construed as preventing
Ontario from shifting resources between labour market programs or from
applying government-wide measures to control expenditures. Ontario agrees
that in the event of an expenditure control exercise, it would not specifically
target programs funded under this Agreement.
(3) By no later than October 1 following the end of each Fiscal Year during the
Period of the Agreement, Ontario agrees to provide Canada with a report by
an independent auditor that Ontario has complied, in all material respects,
with the requirements in subsections (1) and (2).
20. Ontario shall repay to Canada any amounts paid to Ontario in excess of the
amount to which Ontario is entitled under the Agreement. Such amounts are
debts due to Canada and shall be repaid promptly upon receipt of written
notice to repay.
21. Canada and Ontario agree to an accountability framework consisting of the
(ii) financial reporting;
(iii) performance measurement;
(iv) public reporting; and
22.(1) For realizing the vision and achieving the objectives of this Agreement,
Ontario agrees that the implementation of this Agreement will be guided by
the multi-year plan set out in Annex 1. This multi-year plan will be subject to
the subsequent Annual Plans prepared by Ontario as described in subsection
(2) Prior to the beginning of Fiscal Year 2008/09 and prior to the beginning of
each subsequent Fiscal Year during the Period of Agreement, Ontario agrees
to develop and share for information with the Government of Canada an
Annual Plan relating to its Eligible Programs and make it public by October 1.
The annual plan shall include:
(a) an environmental scan that provides a profile of the current labour
market challenges in Ontario;
(b) a description of the Eligible Clients who are to be targeted as priorities
in the coming year;
(c) a description of the priority areas for programming and intended
(d) a brief description of the Eligible Programs, planned activities and
projected expenditures for the coming year by priority area that are
attributable to funding provided under this Agreement;
(e) the results expected for the planned activities referred to in paragraph
(f) a description of the consultation process referred to in subsection (3)
and the types of groups consulted.
(3) In developing each Annual Plan referred to in subsection (2), Ontario agrees
to consult with stakeholders, including business and labour representatives,
community organizations and representatives of the French-language
community in Ontario.
(ii) Financial Reporting
23.(1) By no later than October 1 following the end of each Fiscal Year during
the Period of the Agreement, Ontario shall provide Canada with an audited
financial statement of revenues received from Canada under this Agreement
during the Fiscal Year and the Eligible Costs incurred by Ontario in relation to
the Eligible Programs. The financial statement shall be prepared in
accordance with Canadian Generally Accepted Accounting Principles and
shall show the Program Assistance Costs incurred in respect of each Eligible
Program during the Fiscal Year, the total Program Administration Costs
incurred during the Fiscal Year and, if applicable, the amount of any surplus
funds being carried forward to the next Fiscal Year pursuant to subsection
(2) The audit shall be performed by the Auditor-General of Ontario or his/her
designate and shall be conducted in accordance with Canadian Generally
Accepted Auditing Standards.
(iii) Performance Measurement
24.(1) In order to measure performance of the Eligible Programs, Ontario agrees
to collect and compile, in accordance with Annex 2, the performance indicator
information set out in Annex 2 about the Eligible Clients, the type of
interventions provided under the Eligible Programs and the outcomes of the
interventions. For clarification purposes, the parties agree that no personal
information will be provided by Ontario to Canada.
(2) Ontario agrees to provide to Canada the information referred to in subsection
(1) which it has collected or compiled each Fiscal Year during the Period of
the Agreement no later than five months following the end of that Fiscal Year.
The information shall be provided in the format and manner decided jointly by
Canada and Ontario.
(iv) Public Reporting on Results
25.(1) Canada and Ontario agree on the importance of reporting to the public on
results achieved under this Agreement.
(2) By no later than October 1 following the end of each Fiscal Year during the
Period of the Agreement, Ontario agrees to report to the people of Ontario on
the results of the Eligible Programs achieved in the Fiscal Year. The report
shall show separately the results attributable to the funding provided by
Canada under this Agreement.
(3) Following the end of each Fiscal Year during the Period of the Agreement,
Canada will report annually to Canadians on the aggregate results of the
labour market agreements with provinces and territories based on the
performance indicator information set out in Annex 2 collected and compiled
by all provinces and territories and provided to Canada.
26.(1) Ontario agrees to carry out an evaluation of the impact and effectiveness
of the Eligible Programs and the funding provided in relation thereto under
this Agreement. The evaluation shall cover the period April 1, 2008 to March
31, 2012 and shall be completed by March 31, 2013.
(2) In carrying out the evaluation under subsection (1), Ontario shall:
(a) develop an evaluation framework that adheres to commonly accepted
evaluation practices and methodologies;
(b) submit the evaluation design or framework for review and
recommendations by an independent third party external evaluator
selected by Ontario;
(c) before the evaluation is conducted, share the design or framework with
Canada for information and discussion by the LMA Management
(d) after the findings are obtained, submit the evaluation report to an
independent third party external evaluator, selected by Ontario, for
review before it is finalized; and
(e) provide a copy of the evaluation report to Canada by no later than June
YEAR 2 REVIEW
27. Canada and Ontario agree to design and conduct a joint Year 2 Review of
the implementation of the Agreement that will be conducted in Fiscal Year
2009/10 and completed in 2010/11. The purpose of the Year 2 Review will be
to ensure that both Parties are properly implementing the provisions of this
Agreement and to inform potential improvements to this Agreement.
LABOUR MARKET AGREEMENT (LMA) MANAGEMENT COMMITTEE
28.(1) Canada and Ontario agree to establish a Canada-Ontario LMA
(2) The LMA Management Committee will be co-chaired by the Designated
Officials of the Parties and will meet at least twice annually or as agreed to by
the co-chairs. The co-chairs can invite representatives from other agencies,
departments or ministries to participate in Committee meetings as deemed
appropriate. Where appropriate, the parties agree to schedule meetings of
the LMA Management Committee to take place in conjunction with meetings
of the Canada-Ontario LMDA Management Committee.
(3) The Regional Executive Head of Service Canada will be represented on the
LMA Management Committee.
(4) The role of the LMA Management Committee includes, but is not limited to:
(a) overseeing the overall implementation and management of the
(b) designing and conducting the Year 2 review referred to in section 27;
(c) discussing the evaluation framework referred to in section 26 (2);
(d) discussing Ontario’s Annual Plans;
(e) maintaining linkages with the planning processes under the Canada-
Ontario LMDA; and
(f) sharing views on labour market programs, services and policies as well
as broader developments in the labour market.
(5) Decisions of the LMA Management Committee will be made by consensus.
If consensus cannot be reached, the Committee will follow the dispute
resolution process set out in section 32.
PUBLIC ACKNOWLEDGEMENT OF FEDERAL FUNDING
29. Canada and Ontario agree on the importance of ensuring that the public is
informed of their respective roles under this Agreement and, in particular the
financial contribution of Canada to Ontario’s Eligible Programs. Canada and
Ontario agree to provide information to the public in accordance with Annex 3
to this Agreement.
PERIOD OF THE AGREEMENT AND EFFECTIVE DATE OF FUNDING
30. This Agreement shall come into force when it is signed by both parties and
shall terminate on March 31, 2014 unless it is terminated earlier in
accordance with section 33. However, if the Agreement is signed prior to
April 1, 2008, it is understood and agreed that the effective start date of the
period in respect of which funding is to be provided under the Agreement is
April 1, 2008.
31. Notwithstanding the termination of this Agreement, the obligations of Ontario
under sections 20, 23 and 25 of this Agreement shall survive any termination
and shall remain in force until they are satisfied or by their nature expire.
32.(1) Canada and Ontario are committed to working together and avoiding
disputes through government-to-government information exchange, advance
notice, early consultation, and discussion, clarification and resolution of
issues, as they arise.
(2) If at any time either Canada or Ontario is of the opinion that the other party
has failed to comply with any of its obligations or undertakings under this
Agreement or is in breach of any term or condition of the Agreement, Canada
or Ontario, as the case may be, may notify the other party in writing of the
failure or breach. Upon such notice, Canada and Ontario will endeavour to
resolve the issue in dispute bilaterally through their Designated Officials.
(3) If the dispute referred to in subsection (2) cannot be resolved by Designated
Officials, then the dispute will be referred to the Deputy Minister of Human
Resources and Social Development Canada and the Deputy Minister of
Training, Colleges and Universities, and if it cannot be resolved by them, then
Canada’s Minister of Human Resources and Social Development and
Ontario’s Minister of Training, Colleges and Universities shall endeavor to
resolve the dispute.
33. Either Canada or Ontario may terminate this Agreement by giving 12
months’ written notice of its intention to terminate.
34. Upon termination of the Agreement under section 33, Canada shall have no
obligation to make any further payment to Ontario in respect of Eligible Costs
incurred after the date of termination.
EQUALITY OF TREATMENT
35. During the term of this Agreement, if another province or territory negotiates
a Labour Market Agreement with Canada, and if, in the reasonable opinion of
Ontario, any provision of that agreement is more favourable to that province
or territory than what was negotiated with Ontario, Canada agrees to amend
this Agreement in order to afford the same treatment to Ontario, if requested
by Ontario. The amendment shall be retroactive to the date on which the
Labour Market Agreement with the other province or territory comes into
36. The Annexes to this Agreement are an integral part of the Agreement.
37.(1) This Agreement may be amended at any time by mutual consent of the
parties. To be valid, any amendment shall be in writing and, subject to
subsection (2), signed, in the case of Canada, by Canada's Minister of
Human Resources and Social Development, and in the case of Ontario, by
Ontario’s Minister of Training, Colleges and Universities.
(2) An amendment to any Annex to this Agreement may be made by the written
agreement of the Designated Officials of the parties.
38. This Agreement, including Annexes 1 to 3, comprise the entire agreement
entered into by the Parties with respect to the subject matter hereof.
39. This Agreement shall be interpreted according to the laws of Canada and
40. This Agreement has been drafted in both official languages. However, the
parties agree that the English version shall be the official version.
SIGNED on behalf of Canada by the Minister of Human Resources and Skills
Development, styled Minister of Human Resources and Social Development,
at Toronto this _____day of _____________, 2008
Witness The Honourable Monte Solberg,
Minister of Human Resources and Social
SIGNED on behalf of Ontario by the Minister of Training, Colleges and
at Toronto this _____day of ____________, 2008
Witness The Honourable John Milloy,
Minister of Training, Colleges and
Ontario’s Multi-Year Plan
(Subsection 22 (1))
This multi-year plan is intended to provide a framework for the operation of the
Canada-Ontario Labour Market Agreement (LMA) covering the fiscal years
2008-09 to 2013-14. For the duration of the Agreement, this multi-year plan is
subject to annual plans which will take into account changes in the economic and
Ontario Economy and Labour Market
Ontario’s economic and fiscal outlook is mixed. Over the 2002 to 2006 period,
the resilient Ontario economy grew at a modest pace despite increasing
challenges in the global economic environment. Ontario’s strong economic
fundamentals include a well-educated and highly skilled population, a diversified
industrial structure and modern infrastructure.
Ontario’s economy is currently experiencing two major sources of change:
economic restructuring due to globalization, a high Canadian dollar, and rising oil
prices; and, demographic shifts due to an aging population, a relatively low birth
rate, and high levels of immigration. Ontario’s long term prosperity will require a
focus on supporting a knowledge economy and raising the skill level of its
workers. Success will depend on integrating immigrants effectively into the
labour market, while increasing opportunities for those on the margins of society,
including people with low literacy levels, persons with disabilities, Aboriginal
peoples, older workers, and others.
While Ontario’s economy continues to expand overall, its unemployment rate
surpassed the national average for the first time in thirty years during 2007.
Ontario’s economy is projected to grow at a modest pace in 2008, strengthening
as it adjusts to the global environment. However, growth is expected to be
uneven across industries. While service industries are growing and creating jobs,
the manufacturing and forestry sectors are experiencing significant pressures.
In 2007 the manufacturing sector in Ontario lost about 63,000 workers, with
these losses concentrated in the Greater Toronto Area and Southwestern
Ontario. In the five year period between November 2002 and December 2007,
Ontario’s manufacturing sector lost 194,000 jobs, representing 56% of Canada’s
total manufacturing job losses during that period.
Since June 2002, there have been over 9,200 layoffs in the Northern Ontario
forestry and related industry sector, which includes saw mills and pulp and paper
manufacturers. Employment in forestry and logging alone fell by almost 3,000
people between 2006 and 2007, a decline of 27%.
Ontario is missing economic opportunities because many people who would like
to work are not doing so. And a number of people are not working at a level
commensurate with their skills.
In 2006, almost 126,000 individuals landed in Ontario, representing about 50% of
Canada’s immigrant landings for that year. While they are relatively well
educated, recent data show that only 40% of immigrants find employment in their
chosen field or a related field within two years after arriving in Canada.
Difficulties in obtaining relevant Canadian experience and having foreign
credentials recognized are key barriers.
Consequently, many immigrants face hardships when trying to integrate into the
Canadian labour market. In 2006, the unemployment rate of immigrants in
Ontario who had landed between 2001 and 2006 was 11%, more than double the
rate of 4.4% for the Canadian-born population. The situation was worst for
young immigrants (aged 15- 24), especially women whose unemployment rate
was 19.9%, twice the rate of Canadian-born counterparts (9.8%).
Despite having one of the most highly educated populations in the world, Ontario
faces significant challenges in the distribution of literacy skills among its
population. The 2003 International Adult Literacy and Skills survey indicated that
42% of working age (16-65) Ontarians lacked the literacy skills needed to work in
a complex labour market environment. In numeracy, about 50% of Ontario’s
working age population scored at or above the standard.
Over the past decade, Ontario’s population of Aboriginal peoples (First Nations
people, Métis or Inuit) grew to more than 242,000, or 21 per cent of Canada’s
total Aboriginal population. The 2001 Census showed that 34% of Aboriginal
peoples lack a high school diploma, compared to 20% of non-Aboriginal people.
They also faced a high unemployment rate: 14.7%, more than double the rate of
6.0% for non-Aboriginal people.
In 2001, an estimated 4.4 million Canadians—one out of every seven in the
population---reported a disability. Ontarians reported a disability rate of 15.5%---
slightly higher than the national rate. In 2001, the disability rate among Ontario’s
working-age population (15-64 years) was 11%. Persons with disabilities were
also less likely to participate in the labour force. When they did participate, they
were more likely to be unemployed. The unemployment rate for persons with
disabilities was 9.7% in 2001, almost twice as high as the rate for persons
without disabilities, 5.8%.
To fulfill their potential, Ontarians need opportunities to improve their skills and to
apply them in the workplace.
Ontario Skills Priorities
The Ontario government is investing in people and communities with a vision that
Ontario will have the most educated people and highly skilled workforce in North
America in order to build the province’s competitive advantage. Ontario is
continuing to implement the $6.2 billion Reaching Higher plan for postsecondary
education. In addition, the government has established Employment Ontario –
Ontario’s training and employment network. Through Employment Ontario, the
Ontario government has committed to:
Provide effective, relevant skills training and other employment and career
planning services, where and when they are needed
Enable Ontarians to access the services and support they need to
succeed in today’s job market
Provide a single point of access to employment and training programs and
services that individuals and employers need
Respond to the needs of employers, job seekers, apprentices, new
Ensure service excellence and public satisfaction with our programs and
In addition to Employment Ontario, Ontario is investing to help newcomers settle,
improve their language skills and find jobs through training programs. The
Ministry of Economic Development and Trade works with communities facing
significant challenges, such as the loss of a major employer, to help them build a
successful future. Ontario also works with municipalities and other partners to
improve transitions to employment for clients of Ontario Works and the Ontario
Disability Support Program.
New resources being made available through the Canada-Ontario Labour Market
Agreement will allow Ontario to supplement its current efforts in the labour
market with new investments in four principal areas:
1. Technical Skills Training
2. Labour Market Integration of Immigrants
3. Foundation Skills Training and Supports
4. Labour Market Supports for Persons with Disabilities
Priorities will be developed and managed within a network providing integrated
and excellent service delivery. Each year, a portion of resources will be devoted
to developing capacity and managing new investments. Ontario’s objectives will
1. Technical Skills Training
• Increase access to timely, relevant and effective training opportunities to
assist eligible clients with occupationally- specific training that supports
labour market attachment
• Bridge skills gaps to grow Ontario’s labour supply
• Help meet the demand for skilled tradespersons
• Address cost as a barrier to skills training for the 70 per cent of
unemployed Ontarians who are not eligible for EI-funded training
• Increase opportunities to gain recognized certification to meet demand for
certified workers, including the skilled trades
• Develop mechanisms to ensure that supported training is in areas of
• Meet the needs of new entrants and re-entrants to the labour market,
youth, older workers, Aboriginal peoples, persons previously self-
employed, and others
• Build on current assistance provided under Ontario Skills Development
and Apprenticeship programs
2. Labour Market Integration of Immigrants
• Create opportunities for internationally-trained individuals to quickly meet
regulatory and employer requirements in professions, trades and other
occupations with focused bridge training projects and financial support to
lower costs of participating
• Ensure the availability of financial supports for credential assessment
• Increase opportunities to obtain Canadian work experience through
mentoring, coaching and other supports for work experience
• Ensure coordinated approaches with existing Ontario employment
services as well as settlement services, Bridge Training and language
training supported by the Ontario Ministry of Citizenship and Immigration
and Citizenship and Immigration Canada
3. Foundation Skills Training and Supports
• Improve access to literacy and essential skills training to persons facing
barriers to face-to face delivery, including those in rural and remote
communities, by expanding the electronic delivery channel and necessary
• Ensure availability of foundation skills training tailored to specific trades
and occupations to increase access to higher skill training and
employment, such as apprenticeship, to build Ontario’s learning
advantage and grow the labour supply in demand areas
• Create new opportunities for foundation skills training in the workplace for
clients who have gaps in their literacy and essential skills
• Develop services and information products to assist people with lower
levels of foundation skills to increase labour force attachment
• Meet the needs of new entrants and re-entrants to the labour market,
youth, older workers, Aboriginal peoples, persons previously self-
employed, and others
• Ensure consistency of client assessments with existing services to
improve adult literacy
4. Labour Market Supports for Persons with Disabilities
• Remove barriers to participation in training and employment services,
such as sign language interpreters, alternate formats, and attendant care
• Increase availability of employer incentives to train on the job, including
accommodations and enhancements in the workplace
• Coordinate services supported by several Ontario ministries to address
the needs of persons with disabilities
• Coordinate programs across the provincial government to meet the needs
of persons with disabilities
1. Technical Skills Training 2. Labour Market Integration 3. Foundation Skills 4. Labour Market
LMA Priority of Immigrants Training and Supports Supports for Persons with
Increased skill levels and Faster integration of Increased level of Increased participation of
increased opportunities for internationally trained foundation skills to persons with disabilities
employment for Eligible individuals to work in their increase opportunities for in labour market training
Client groups. fields (with recognized employment and employment services
accreditation where and increased
appropriate) and increased opportunities for
opportunities for employment. employment.
• Unemployed individuals Internationally-trained • Unemployed Persons with disabilities
who are not EI Clients individuals who are: individuals who are who are:
• Employed individuals • Unemployed individuals not EI Clients • Unemployed
who are low skilled, in who are not EI Clients • Employed individuals individuals who are
particular, those who do • Employed individuals who who are low skilled, in not EI Clients
not have a high school are low skilled, in particular, those who • Employed individuals
diploma or a recognized particular, those who do do not have a high who are low skilled, in
certification or who have not have a high school school diploma or a particular, those who
Eligible Clients low levels of literacy and diploma or a recognized recognized do not have a high
essential skills certification or who have certification or who school diploma or a
low levels of literacy and have low levels of recognized
essential skills literacy and essential certification or who
skills have low levels of
literacy and essential
Year 1: $138M Year 1: $16M Year 1: $34M Year 1: $6M
Year 2: $138M Year 2: $16M Year 2: $34M Year 2: $6M
Year 3: $138M Year 3: $16M Year 3: $34M Year 3: $6M
Year 4: $138M Year 4: $16M Year 4: $34M Year 4: $6M
Year 5: $138M Year 5: $16M Year 5: $34M Year 5: $6M
over 6 Years of
Year 6: $138M Year 6: $16M Year 6: $34M Year 6: $6M
TOTAL: $828M TOTAL: $96M TOTAL: $204M TOTAL: $36M
PERFORMANCE INDICATOR INFORMATION
1. Canada and Ontario acknowledge that groups who are underrepresented in
the labour market often have multiple barriers that are affected only in part
through labour market interventions, and that these multiple barriers must be
taken into account in interpreting and reporting to the public the results of
labour market interventions provided to such clients.
2. Subject to sections 3 and 4 of this Annex, Ontario agrees to
(a) collect and compile the information set out below based on tracking
service activities and on samples of activities and Eligible Clients; and,
(b) provide the information to Canada, in a format and manner to be decided
jointly by Canada and Ontario, no later than five months following the end
of each fiscal year:
(i) Eligible Client indicators
(a) Total number of Eligible Clients served/in training by employment status
(that is, employed, unemployed, self-employed).
(b) Education level of Eligible Clients prior to intervention, as follows:
• Number of clients served with less than high school
• Number of clients served with high school
• Number of clients served with post secondary education
(c) Number of Eligible Clients served in an intervention by designated client
group (that is, Aboriginal peoples, immigrants, older workers, persons with
disabilities, women, youth)
(ii) Service Delivery Indicators
(a) Number of Eligible Clients participating in interventions by intervention
(b) Proportion of Eligible Clients “satisfied” with service received upon
completion of the intervention
(iii) Eligible Client Outcome and Impact Indicators
(a) Proportion of Eligible Clients who have completed their intervention,
by intervention type.
(b) Proportion of Eligible Clients who, 3 months and 12 months after
leaving the intervention, are:
(ii) unemployed, or
(iii) continuing in an intervention
(c) Number of Eligible Clients who have earned credentials or
certification through participation in the intervention.
(d) Average hourly earnings of Eligible Clients following the intervention.
(e) Proportion of Eligible Clients who, 3 months and 12 months after
leaving the intervention, indicate their training helped prepare them
for future employment.
3. The parties acknowledge and agree that:
(a) Ontario will begin to collect or compile the Eligible Client Outcome and
Impact Indicators referred to in paragraphs 2 (iii)(b) and (e) in fiscal year
2009/10 and will begin providing that information to Canada in 2010 or by
such later date(s) as may be mutually agreed to by the Designated
(b) Ontario will begin to collect or compile the Eligible Client Outcome and
Impact Indicators referred to in paragraphs 2 (iii)(c) and (d) in fiscal year
2010/11 and will begin providing that information to Canada in 2011 or by
such later date(s) as may be mutually agreed to by the Designated
4. The parties acknowledge that Ontario’s ability to collect and compile
information about Eligible Clients must be done in accordance with the laws
of Ontario including the Freedom of Information and Protection of Privacy Act.
This means that Ontario may not be able to collect certain information without
self-identification, voluntary response or consent of clients. Ontario agrees to
make best efforts to encourage Eligible Clients to self-identify, voluntarily
respond or provide any necessary consent, as applicable. In cases where the
quality of information is in serious question, either party may raise the matter
for discussion and clarification at the LMA Management Committee.
The purpose of this Annex to the Canada-Ontario Labour Market Agreement is to
describe how Ontario will ensure that Canada’s contributions are appropriately
acknowledged by Ontario, as well as by third parties in receipt of funds provided
under this Agreement.
1. Canada and Ontario will jointly prepare public information material and jointly
organize and participate in any public announcement relating to the signing of
the Canada-Ontario Labour Market Agreement.
2. Ontario agrees to acknowledge Canada’s support of Ontario’s Eligible
Programs in signage, advertising, posters, exhibits, pamphlets, brochures,
forms for the use of clients, news releases, public announcements, program
descriptions and correspondence, and public reports on Ontario’s Eligible
3. Ontario agrees to ensure that third party offices, where programs and services
to clients funded under this Agreement are delivered, will have appropriate
identification indicating that the programs and services provided at that office
are funded in whole or in part by Canada.
4. Canada and Ontario agree to cooperate to provide opportunities for
announcements, ceremonies, celebrations, and releases of reports to allow
representatives of Canada and Ontario to clearly articulate the role of each
government in supporting Ontario’s Eligible Programs.
5. Ontario agrees to ensure that cheques or deposit statements for clients
receiving assistance under Ontario Eligible Programs, either directly from
Ontario or through an organization receiving funding from Ontario, will include
the Government of Canada word mark.
6. Canada and Ontario agree to consult and give each other reasonable
advance notice of any major public relations initiatives to inform Canadians of
activities being undertaken in the context of this Agreement.